Regulatory Compliance Association Reviews

Regulation of Valuation — Emerging Issues and Best Practices ™

Practice Edge 02

Regulation of Valuation — Emerging Issues and Best Practices™

Date: February 25, 2015
General Session: 12 Noon to 1:30 PM
Location: Webcast (Free)

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The SEC has long been focused on the valuation practices, policies and procedures of fund managers, since the overvaluation of fund assets will result in better reported investment performance, potentially increased asset-raising, and higher fees for the manager. Since the financial crisis and the registration of most of the hedge fund and private equity fund industry with the SEC under Dodd-Frank, the SEC has made valuation (particularly of illiquid fund assets) one of its top areas of examination and enforcement focus. However, despite statements by staffers to the contrary, the SEC has not provided valuation guidance to the hedge fund or private equity fund industries, and it has not provided guidance to the mutual fund industry in over forty years. Instead, it has brought a series of enforcement actions against fund managers alleging that conflicts and procedural flaws led to the overvaluation of fund assets, and SEC staffers have criticized certain valuation practices in public remarks.

This session will provide a comprehensive framework for addressing valuation policies and procedures at asset managers. It will cover the areas and issues on which the SEC is concentrating in examinations and enforcement, as well as common and best industry practices.

 Students will master the following at the conclusion of this session:

• Recognize the most common valuation issues and concerns
• Identify the most problematic valuation risks in light of SEC initiatives
• Define the key elements of strong valuation policies and procedures
• Assess the adequacy and reasonableness of valuation policies, procedures and disclosures
• Determine steps that fund managers can take to improve policies and procedures
• Associate particular policies and procedures with particular fund and asset types that they are best suited to address

Session Chairman:
Walter Zebrowski, JD, CPA, Principal, Hedgemony Partners
Chairman, Regulatory Compliance Association

Senior Fellow from Practice:
Mark Perlow, JD, Partner, K&L Gates

Guest Lecturers:

Steven Felsenthal, JD,LLM, General Counsel, Chief Compliance Officer & Principal, Millburn Ridgefield
Shannon Horton, Chief Compliance Officer, KKR Asset Management
Amanda Miller, Ph.D, Executive Director, EY
Jim Plohg, JD, General Counsel & Chief Compliance Officer, Ashford
Josh Rozenberg, CPA, Visium Asset Management